@Snoopy6-431
No, you aren’t reading what is being written.
The cost basis of a gift is not the market value on the date of the gift. The cost basis of a gift is the cost basis of the giver.
That means that if you give your grandson a gold coin, the cost basis that your grandson must use on his tax return, whenever he sells the coin, is the price that you originally paid. Or, if you yourself inherited the coin, your cost basis is the market value on the date the previous owner died.
If you want to help your grandson (in this example) pay the least amount of capital gains possible, you would give your grandson a gift letter that gives the date that you purchased the coin and the amount that you paid.
Granted, most people probably fail to do this. You are commendable in trying to look ahead and help the recipients of your generosity pay the least amount of tax possible.
Depending on the sizes of the gifts that you intend to make, you may wish to speak to a financial planner. There are strategies that you could use to reduce the tax that your gift recipients would owe, if and when they sell your gifts. These strategies might not be as impressive looking as handing a gold coin to a young person. But you may want to at least educate yourself on your options.
